HUL slips 4% in trade post Q3 results; here's why stock is under pressure

Hindustan Unilever (HUL) shares slipped 3.8 per cent in trade on BSE, logging an intra-day low at ₹2,368 per share. At 10:43 AM, HUL’s share price was trading 1.86 per cent lower at ₹2,416.7 per share. In comparison, the BSE Sensex was down 0.4 per cent at 83,899.51.

 

Hindustan Unilever stock was under selling pressure after the company reported Q3FY26 results. In the December quarter, HUL posted a 30 per cent decline in consolidated net profit (from continuing business) to ₹2,118 crore, compared to ₹3,027 crore year-on-year (Y-o-Y). 

 

Reported profit after tax came in at ₹6,603 crore, up 121 per cent Y-o-Y, primarily driven by one-off positive impact arising from the Ice Cream business (Kwality Wall’s) demerger. The revenue of the company came in at ₹16,441 crore, compared to ₹15,556 crore a year ago, up 5.6 per cent. 

 

The Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹3,788 crore, as compared to ₹3,689 crore a year ago. Ebitda margin was at 23.3 per cent, against 24 per cent a year ago.

 

Segment-wise, home care revenue came in at ₹5,887 crore, beauty and wellbeing revenue at ₹ 3,930 crore, Personal care ₹2,370 crore and food at ₹3,689 crore. 

Management commentary:

“During the quarter, demand trends reflected early signs of recovery, underpinned by supportive policy measures. Against this backdrop, we delivered a competitive performance, with 6 per cent revenue growth and 4 per cent underlying volume growth. We continued to build desirability at scale with our brands, and accelerate market development in high-growth demand spaces, and strengthen our capabilities to scale Channels of the Future with a dedicated

organisation for quick commerce,” said Priya Nair, CEO and managing director, HUL. 

 

She added: As market leaders in fast-moving consumer goods (FMCG), our commitment to building modern brands, leading category creationand invest disproportionately to build future moats, places us in good standing to deliver sustained volume-led growth and create ong-term shareholder value.

Outlook:

The management expects macro stability, coupled with supportive policy measures, to foster a conducive backdrop for consumption. It expects FY’27 to be better than FY’26, led by portfolio and channel transformation. 

 

The company will focus on driving competitive, volume -led revenue growth. It is also committed to continue investing in the business for sustained growth. Consolidated Ebitda margin is guided to be around the current guided range. 

HUL acquisition update 

The board also approved the acquisition of the balance stake of 49 per cent in Zywie for cash consideration of ₹824 crore, in accordance with the terms and conditions of the SSSPA. Along with the sale of the company’s entire 19.8 per cent shareholding in Nutritionalab.

 

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